What is Forex

FOREX is the term commonly used when referring to the foreign exchange market.

FOREX (Foreign Exchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.

Reason why the freedom of any external control and the free competition, the CURRENCY is a perfect market. It is also greater the liquid financial market. According to several burdens, the money forms in the market constitutes to divide 1 for 1,5 dollars of trillón E.E.U.U per day. (It is impossible to determine a exact absolute number because negotiating one does not centralize in an interchange.) the transactions conduct by everybody route telecommunications 24 hours to the day of the GMT of 00:00 Monday to the GMT of 10:00 P.M. Friday. Practically inside whenever the zone (that is to say, in Frankfurt-in-Main, London, New York, Tokyo, Hong Kong, the etc.) there is the distributors who will quote modernities.

The CURRENCY is a more objective market, because if some of their participants wanted to change prices, for a certain manipulante intention, they would have to work with ten of dollars of billion. That one is because any influence by the single participants in the market is practically inadmissible. The superior liquidity allows that the retailers open themselves and/or the near positions within some seconds. The time to keep a position is arbitrary and it does not have any limit: as of several seconds to many years. It only depends on your strategies that negotiate. Although the daily fluctuations of insignificant modernities are something, you can use the lines of credit, that are accessible even to the speculators of modernity with the small capitals ($ 1,000 - 5,000), where the benefit can be impressive.

The idea of marginal commerce comes from the fact that in the interests speculated on you of FOREX can be satisfied without the reservoir monetary real. That makes to diminish expenses acclimatizes them for transfer moneies and gives to an occasion to the positions opened with a small customer in dollars US, Buying and selling a lot other currencies. That is over it can lead a lot quickly the transactions, obtaining a great profit, when the exchange rates go in on or down. Many speculative transactions in international the financial markets are made for principles of marginal commerce.